What happens if I miss a business loan repayment?

2 min read

ArrearsThe account falls behind

Fee + recordA charge and credit impact may follow

Call earlyThe single best move

What happens straight away

When a scheduled repayment is not collected, the account falls into arrears — it is simply behind by the missed amount. The lender will usually notify you and may apply a late or missed-payment fee in line with your agreement. At this earliest stage nothing drastic happens; the account is flagged and the lender expects to hear from you. Acting in this window is far easier than letting it drift. For the late-payment specifics, see what happens if I repay late.

The arrears process if it continues

If the missed payment is not resolved, the lender works through a defined arrears process rather than acting all at once. That typically means reminders, contact to understand what has gone wrong, and the chance to agree a way forward. Continued non-payment can lead to the arrears being reported to credit reference agencies, affecting the company's profile, and in serious, unresolved cases to formal recovery steps. But each stage comes with notice and opportunity to engage. The arrears definition sets out the terms.

Why contacting the lender early matters

The single most useful thing you can do is get in touch before a small problem grows. Lenders see cash-flow gaps constantly, and a director who flags an issue early is treated very differently from one who disappears. Early contact can open up options — a revised date, a short arrangement, or a restructure — that simply are not available once an account has been left to deteriorate. Silence removes choices; a phone call adds them. See what if I can't repay my business loan.

What this means for your company

If you know a payment will be missed, contact the lender before the date if you can, and certainly as soon as it happens. Explain the situation honestly and ask what options exist. Credicorp lends to the UK limited company, with no personal guarantee, so it is the company's facility under discussion, and a constructive early conversation is in everyone's interest. You may also be able to adjust the schedule — see can I change my repayment date.

Frequently asked questions

Does one missed payment ruin everything?

Usually not. A single missed payment puts the account in arrears and may incur a fee, but it is generally recoverable — especially if you contact the lender quickly and agree how to bring it back on track.

Will a missed payment hit the company's credit file?

It can, particularly if arrears continue unresolved. Engaging early and agreeing a way forward reduces the risk of escalation. The lender works through a process with notice rather than acting all at once.

What should I do the moment I realise I'll miss one?

Contact the lender straight away — before the date if possible. Explaining the situation early opens up options like a revised date or a short arrangement that disappear if the account is left to drift.